Life Insurance Need Calculator
The DIME method: Debt + Income replacement + Mortgage + Education. Free, no email required, results update as you type.
Your numbers
Typical: 10 years (working spouse) or until youngest kid is 18.
Typical: $25k-$50k per child for in-state public, $100k+ for private.
Recommended coverage gap
$1,000,000
Coverage you should buy to fully fund DIME after subtracting what you already have.
Math behind the number
How the DIME method works
DIME is a four-bucket method financial planners use to size term life insurance. It tracks the specific obligations that disappear (or don't) when a primary earner dies. The math is simpler than "10x income" rules of thumb and almost always lands closer to what families actually need.
- D — Debt: credit cards, auto, student loans, personal loans. Anything not the mortgage.
- I — Income replacement: annual income times the number of years dependents need it. 10 years is common; until-kids-18 is the other common choice.
- M — Mortgage: the current balance, not the original loan amount.
- E — Education: college fund target for any dependent kids. $25k-$50k per kid for in-state public, more for private.
From that sum, subtract existing group + individual coverage and liquid assets (savings, 401k, investments). The remainder is the coverage gap a term policy should fill.
When DIME underestimates
DIME does not account for inflation across the income-replacement window, special-needs care, or a non-earning spouse's economic contribution (childcare, household management). Families in those situations typically need 15-30% more than DIME suggests.
When DIME overestimates
Two cases. First, dual-earner households where the surviving spouse can fund some of the gap from continued income. Second, families with significant equity in the home and a flexible housing plan. Many planners reduce DIME by 20-30% in those situations.
Ready for a real quote?
The DIME number is a target. A real quote depends on age, health, tobacco use, and the policy length. TCDS shops term life from ~25 carriers in one submission.
